JSE-listed REIT Vukile, through its Spanish subsidiary Castellana, acquired the Forum Madeira shopping centre in Funchal, Madeira, Portugal, last year.
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Vukile Property Fund has successfully raised R2.8 billion from the market through an accelerated bookbuild on the JSE to help fund its initial entry into the Italian commercial property market.
Vukile, a retail focused REIT with retail centres in South Africa, and in Spain and Portugal through its Spanish subsidiary Castellana, intends to acquire three shopping centres with a gross asset value of €115 million (about R2.2bn).
The R2.8bn raised through the issue of 123 million new ordinary shares. The bookbuild shares were placed at a price of R22,60 a share, representing a 4.32% and 4.43% discount to the pre-launch Vukile closing share price, and the 10-day volume-weighted average price, respectively, on May 19, 2026.
Vukile said in a statement it has a demonstrable track record of identifying mispriced assets and capitalising on opportunities. The company said Wednesday it remains encouraged by the pipeline it has identified, both locally and internationally.
In addition to the assets in Italy, the balance of the proceeds would provide the group with the optionality and financial flexibility required to continually evaluate value-enhancing opportunities and fund potential further pipeline in the near term. The equity raise was offered to qualifying investors.
Vukile’s share price fell 2.37% to R23,08 on the JSE on Wednesday afternoon, although the price is still 20% higher than it was 12 months ago.
In a pre-close statement this week, Vukile stated that it expected growth in FFO (funds from operations) and dividend per share to be 9.3% for the full year ending March 31, 2026. For the next financial year, it forecasted FFO per share growth of between 8% to 10%.
Additionally, the dividend payout ratio would be increased to 85% from 83%, which it said should deliver growth in dividend per share for the year ending March 31, 2027, of between 10% to 12%.
“This growth is underpinned by strong operational performance across all geographies, supported by completed and near-completed accretive transactions,” the group said.
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